[sak9645]

Renee,

I am not a CPA. I don't even play one on TV.

I am a single Mom of a wonderful daughter from China. I applied for and received the tax credit back in 1997, when it was only a $5,000 credit. The process was exactly the same as it is now, except that there are now some new elements for people adopting special needs children domestically. I do my own taxes, using tax software, and did some research to make sure that the tax program and I were doing things right.

Up until recently, I was also the Executive Director of a respected adoption advocacy organization. The organization supported the increase in the tax credit, as long as it gave incentives for families to adopt special needs children, over and above the incentives given to all adoptive families. And this, in fact, was the way the law finally worked.

In my professional role, I spoke with Congressional staff and others involved with passage of the bill. I had to understand its particulars for that. I also had to explain the law, orally and in writing, to adoption agencies and parents, once it took effect.

Sharon

[reneetaylor]

Sharon, I appreciate the info. I can't remember what I did back in 1998 when I adopted my daughter, so I have nothing to base this credit on. I look forward to having my taxes done so I can ask the people at H&R Block what their experience has been.

Thanks for your input.
Renee

[sak9645]

With all due respect to H&R Block, let me tell you that there are many tax preparers -- both individuals and people associated with large organizations -- who have had little or no contact with adoptive families and, consequently, have not really had to look at the adoption tax credit and how it works. Unfortunately, there are adoptive families who have been given all sorts of misinformation by these preparers.

So let me urge you to ask potential tax preparers -- before you have them do your work or pay them any money -- whether they have worked with adoptive families and are familiar with the Hope for Children Act, which increased the tax credit, and its implementation.

Let me also urge you to read the text of the law on Thomas, the website of Congress. Make sure that you are reading the final version of the act, which underwent many changes before it was finally passed. You may want to print out a copy to take to your tax preparer.

In addition, let me urge you to look at INS form 8839 and its instructions on your own, before the tax preparer does his/her work. You can download copies from the IRS website. You might want to try filling out the form and plugging in the numbers where they go on the 1040, just to form your own estimate of its implications for you.

Then, when you get the draft tax forms back from the preparer, please review them carefully. (It's something you should do in any case, as you will be signing the forms!) If there is something that doesn't seem right to you, ask about it. While it is possible that you may not have understood something correctly, it is also possible that the preparer may have made an error.

Sharon

[reneetaylor]

Sharon, thanks for the advice!